SUMMARY
The AI security and risk management startup’s funding round was led by RTP Global, with participation from Picus Capital and a host of angel investors
Founded earlier this year by Ruchir Patwa and Ankita Kumari, the startup is building a suite of solutions which helps detect and prevent vulnerabilities in AI tools
SydeLabs has launched its first product in beta phase earlier and aims to launch another before the end of March 2024
AI security and risk management startup SydeLabs has raised $2.5 Mn (INR 20.8 Cr) in a seed funding round led by venture capital firm RTP Global, with participation from Picus Capital and a host of angel investors.
SydeLabs will use the funds for product development and research and development.
The Bengaluru-based startup was founded by Ruchir Patwa and Ankita Kumari in January this year. The duo’s earlier experience with artificial intelligence (AI) during their stint with Mobile Premier League (MPL) prompted them to launch this new venture.
Kumari, who was leading the product management team at the fantasy gaming platform, told Inc42 that while the AI tool deployment at customer interface optimised MPL’s tech function, it also unleashed a series of cyber threats.
So, she partnered with Patwa, who was looking after security and compliance at MPL, to build solutions to address the risks associated with AI adoption by enterprises.
“Inherently, AI systems are very different from traditional systems and that’s the reason why traditional cyber security measures are not able to tackle AI security. It’s a probabilistic system as opposed to deterministic systems which we’ve been historically accustomed to. For example, if you ask a traditional system a question multiple times, the answer would remain the same. However, an AI-generated response will differ each time. Due to this, we believe that AI-based tech needs different guardrails beyond traditional cybersecurity,” she said.
Given the fact that a majority of AI tools have access to a company’s internal data, there is a risk of them leaking out sensitive data. To tackle these risks, SydeLabs is building three products.
The first product, SydeBox, is an automated scanner of AI applications to detect issues with the AI tools before an organisation starts using it. After running scans at that stage, the suite comes out with a detailed report allowing the company to fix potential issues with the AI product.
The beta rollout of SydeBox took place earlier this month.
Kumari said that the startup has also partnered multiple companies across sectors like ecommerce, financial services and core AI, which are building foundational models.
SydeLabs is aiming to launch its second product, SydeGuard, in the beta phase by the end of this month. SydeGuard is a real-time assessment security guardrail. Kumari likened it to a firewall for AI products which will protect them from cyber attacks.
The startup plans to run this product on a consumption-based model, under which it will charge businesses for every prompt or query that SydeGuard evaluates for their applications.
Besides, SydeLabs is also working on a compliance-based product to make sure that enterprises are compliant with the laws.
The requirement of such a product that can evaluate an AI application’s compliance stems from the fact that more rules and regulations around AI are coming around on a regular basis, Kumari added.
With these three products up and running within the year, the startup is eyeing an annual running revenue of $1 Mn by the end of 2024. To achieve this, it aims to ramp up research and development.
“In AI security, what we have realised is we always need to be a step ahead from the bad actors given the fact that new threats are arising regularly. Research on the tech used is a core part of our offering and incorporating that research into our product is really essential. Hence, a bulk of the funding will go into research and product development,” Kumari said.
Commenting on the funding, RTP Global’s Asia Investment team’s partner Galina Chifina said, “We are super excited about the potential SydeLabs has in setting new standards for AI applications that are as secure as they are ground breaking. We love the vision of Ruchir and Ankita and are happy to back them so early in their journey. SydeLabs’ approach to AI security showcases the kind of forward-thinking application of technology we champion at RTP Global.”
SydeLabs is looking to capitalise on the growing adoption of AI-based solutions across multiple sectors amid the generative AI boom.
For instance, multiple Indian startups in the fintech domain are utilising GenAI to enhance their customer support, marketing, insurance underwriting, and investment recommendation functions. Ecommerce players have also integrated several GenAI tools with their systems to enhance customer experience and operational efficiencies.
According to Inc42’s ‘India’s Generative AI Startup Landscape, 2023’ report, the country’s GenAI market is expected to grow exponentially in the next few years. It is projected to surpass the $17 Bn mark by 2030 from $1.1 Bn in 2023, growing at a CAGR of 48%.
